The company announced it had reached an agreement with Alibaba to reduce the maximum number of shares Yahoo! must sell in connection with Alibaba's IPO from 208 million to 140 million. Yahoo paid more than $2 billion in taxes in 2012 when it sold half of its 40% stake in Alibaba back to the company for $7.6 billion.
Yahoo! reported earnings, excluding items, of 37 cents a share, just shy of the consensus estimate of 38 cents a share from analysts polled by Thomson Reuters. Second-quarter revenue totaled $1.04 billion, which was short of analysts' estimate of $1.08 billion.
The stock was up 3.03% to $36.69 at 4:10 p.m.
TheStreet Ratings team rates YAHOO INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate YAHOO INC (YHOO) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."